From Financial Modeling Prep: 2025-06-04 08:00:00

Boeing has shown strong production momentum and improving fundamentals, making it Bernstein’s top pick in Global Aerospace & Defense. With commercial aircraft demand exceeding supply until the 2030s and defense contracts growing, Boeing is set for a sustained recovery. Bernstein’s bullish case highlights production ramp‑ups, defense improvements, and attractive valuation metrics.

Production of Boeing’s 737 MAX line is approaching stability at 38 jets per month, with plans to reach 42 by year‑end and 47 six months later. The 787 Dreamliner line is also set to hit 7 jets per month, signaling normalized supply. Certification timelines for the 737‑7 and 737‑10 are on track, maintaining Boeing’s competitive edge.

Boeing’s defense segment is stabilizing, with no Q1 charges and a recent win in the F‑47 program. The company’s liquidity is improving post-Jeppesen divestiture, with Q1 2025 operating cash flow at $1.2 billion. Boeing’s valuation remains below pre‑737 MAX grounding levels, offering growth potential as the balance sheet transitions to investment mode.

Boeing’s commercial backlog remains strong, with improved operating margins reflecting higher production efficiency. Defense business is gaining traction, evidenced by the F‑47 program win and absence of significant Q1 charges. Boeing’s valuation multiples suggest the market still discounts residual execution risk, but could realign with historical averages.

While Boeing faces supply chain challenges and regulatory hurdles, Bernstein’s call suggests a phased investment approach. Monitoring production metrics, defense bookings, and potential valuation re‑rating can guide investor decisions. As Boeing continues to meet production milestones, accumulating shares may offer a favorable risk‑reward trade‑off.



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